A number of settlements between three MF Global administrators and JP Morgan Chase has opened the door for substantial distributions to be made to former commodity customers of the US futures commission merchant. Several conditions must be met before the settlements become effective, but those conditions are foreseen to be met around August 1, 2013.
The trustee for the U.S. futures brokerage is currently in the process of making distributions to bring 4d / domestic futures customers from 80% to 89% of their claim amount and 30.7 / foreign futures customers from 5% to 18%. Once the settlements become effective and projected payments are made between the estates, further distributions should be able to bring 4d / domestic futures customers to about 96% and 30.7 / foreign futures customers to about 80% to 85%. If the conditions to the settlements are all met as projected, the latter distributions would likely begin late in 2013. Final steps to bring all customers to 100% would then require either reallocation of firm assets to customers, which the parent company’s trustee has already agreed to in principle, or further recoveries from pending class action litigation.
Neal R. Stevens
Schuyler, Roche & Crisham, P.C.
nstevens@SRCattorneys.com
312 565.1045 TEL (CHI) | 212 334.7948 TEL (NYC)
917 301.4744 CEL | 312 565.8300 FAX
